Speaking at a press conference on Thursday afternoon, Thant Sin Lwin, director general of the Directorate of Investment and Company Administration, said Myanmar would take advantage of the full-day event to explain its business-related laws and regulations. The event will be held at the Centara Grand Hotel in Bangkok on August 23.

“Our high-level delegation led by the chairman of Myanmar Investment Commission Thaung Tun will be there to publicise all the updates Thai investors need to know,” he said.

The official said the event would help Thai and foreign businesses unlock “enormous opportunities” in Myanmar.

“We will arrange the best speakers to attract more Thai investments to Myanmar,” he said.

“Today, Thailand is the third largest investor in Myanmar [after Singapore and China] in terms of the value of investment among the permitted enterprises, accounting for 14 per cent of our total foreign direct investment [FDI]. We hope it will remain the same in the months to come.”

The Myanmar Sustainable Development Plan (MSDP) and Project Bank, which unveils the government’s prioritised projects, will be among the key topics for discussion at the seminar.

Thai Ambassador to Myanmar Suphatra Srimaitreephithak says the plan as very comprehensive and integrated.

“I am a believer in MSDP. With the implementation of both MSDP and MIPP, it is very timely for Thai private sector and government officials to get to know more about the updates,” she said.

“This year, we have seen Myanmar’s economy igrowing stronger and stronger. With MSDP, I believe that whoever wins the elections, will be able to drive this country towards the development path.”

Bilateral trade for the first half of 2019 exceeded US$3.85 billion (Bt119.22 billion), up by $21 million from the same period last year, according to Thailand’s Ministry of Commerce.

Last year, bilateral trade was recorded at $7.64 billion, up by 12.58 per cent from the previous year. Thailand’s exports to Myanmar grew by 7.35 per cent at $4.6 billion while Thailand’s imports from Myanmar rose by 21.6 per cent at $3 billion.

“We have a trade target to accomplish. Both sides have agreed to increase our trade volume in the next three years,” said the envoy.

Suphatra said the upcoming 2020 general election results would not have major impact on Thai business interests in Myanmar.

“We see much room for bilateral cooperation. We hope this event will result in closer ties between Thai and Myanmar officials as well as among the Thai private sector,” she said.

“The future of politics in Myanmar depends very much upon its citizens. But as we are close neighbours of Myanmar, we only hope that the best will happen in this country.”

Nattawin Phongsphetrarat, vice president of the Thai Business Association of Myanmar (TBAM), which co-organised the event with the Royal Thai Embassy, told The Nation that retail, wholesale and manufacturing sectors would be prioritised.

“We look at it as a gateway to attract Thai and foreign businesses to do business in Myanmar,” he said.

“We are developing the Myanmar Insight as a living seminar. This year, new economic policies have been developed by the Myanmar government, and officials will share the updates with our participants.”

Nattawin expects to accommodate more than 600 Thai business people this year, the same as the previous three events.

“There, we will hear about the projects that Myanmar wants to push forward. As we are complementing each other, I am sure more and more Thai companies will participate in these projects,” he said.

“Additionally, Thai business people in Myanmar will share their experiences and success stories with businesses back home so prospective Thai investors can be well-prepared and inspired to enter this market.”

According to Nattawin, the seminar is open to members and non-members of TBAM. Tickets cost Bt2,500 for TBAM members and Bt3,500 for non-members.

“I am confident that we will attract more Thai investors to Myanmar this year. We are ready to support Thai businesses that are keen to expand to Myanmar in every possible way,” he said.

In its statement released on Thursday, it said the decision to change the outlook to positive reflects Moody’s view that investment in physical and human capital, in the context of a lengthening track-record of a predictable and stable macroeconomic environment, might over time boost Thailand’s competitiveness. Such developments could partially offset the drag on the country’s growth potential from gaps in human capital development and an ageing population.

The affirmation of Thailand’s Baa1 ratings reflects the country’s very strong public and external finances that provide Thailand significant room to counter shocks. Thailand’s large and diverse economy also supports shock absorption capacity and the rating. By contrast, the Baa1 rating also takes into account credit constraints from lingering, albeit easing, political risk and, longer-term structural challenges related to an ageing society and labour skills shortages that weigh on growth potential.

In addition, Moody’s has also affirmed Thailand’s local currency senior unsecured ratings at Baa1 and the foreign currency commercial paper rating at P-2. Concurrently, Moody’s has affirmed the local currency senior unsecured rating for the country’s central bank, the Bank of Thailand, at Baa1.

Thailand’s country ceilings remain unchanged. The long-term foreign currency bond ceiling remains at A2, and the short-term foreign currency bond ceiling at P-1. The long-term foreign currency deposit ceiling remains at Baa1, and the short-term foreign currency deposit ceiling at P-2. Furthermore, the long-term local currency bond and deposit ceilings remain unchanged at A1.

Thailand is building a lengthening track record of transparent and predictable fiscal and monetary policies that maintain a broadly stable and low government debt burden, low and stable inflation and financial stability. Long-standing macroeconomic stability through economic and political cycles supports competitiveness.

The government’s investment plans on physical capital may partly address Thailand’s competitiveness challenges. In particular, under its 20-year national strategy, the government’s economic plan to raise infrastructure investment in the $50 billion Eastern Economic Corridor (EEC, about 10 per cent of GDP) could support Thailand’s competitiveness through attracting new businesses and technologies. At present, development in the EEC is contributing to a pick-up in private domestic investment and foreign direct investment. Total net investment applications through the Board of Investment in the government’s 10 targeted industries reached Bt700-Bt800 billion in 2017-18 (4.6 per cent-5.2 per cent of GDP), double the levels of 2016. Beyond the EEC, the government’s plan includes investing Bt2.76 trillion (about $89 billion or 18 per cent of GDP) in infrastructure through the Transport Action Plan 2016-18.

Increased competitiveness would be reflected in sustained higher private investment and higher productivity. In the context of potential shifts in production location across Asia, related in part to the US-China trade dispute, a boost to the economy’s attractiveness as a place to locate production from high-quality infrastructure would benefit Thailand’s growth in the medium term.

But the effectiveness of investment in physical capital in attracting private investment and shifting the country’s production to higher value-added industries also hinges on addressing the country’s labour skills shortages. In particular, Thailand faces a shortage of highly skilled labour in areas such as next generation automobiles, software engineering and artificial intelligence, which poses risks to the government’s ability to develop manufacturing capabilities in higher value-added production. The government, in conjunction with the United Nations, is working to promote education that focuses on science, technology, engineering and mathematics, while it is also establishing vocational training institutes to enhance the development of teachers and link educational institutions to enterprises to foster human capital development. These initiatives may, over time, help boost labour skills and productivity.

Overall, Moody’s projects real GDP growth of between 3.0 per cent and 3.5 per cent in 2019-20. At these rates, Thailand’s growth will remain in line with the median for A- and Baa-rated sovereigns in the next couple of years. More effective investment in physical and human capital would boost potential growth. Longer term, effective investment in physical and human capital also offers the prospects to partially offset significant downward pressure on the economy’s growth potential from a rapidly ageing population.

The affirmation of Thailand’s Baa1 ratings reflects the country’s very strong public and external finances, the result of effective macroeconomic policy, that provide Thailand significant room to counter shocks.

Despite continued fiscal accommodation to support infrastructure investment in the next few years, Moody’s projects general government debt to remain around 35 per cent-40 per cent of GDP in 2019-20, staying around the median of 37 per cent for A-rated sovereigns and well below the 52 per cent median for Baa-rated sovereigns. Thailand’s low government debt burden provides it very high fiscal flexibility such that it can fund additional spending on addressing economic and social development needs and counter potential future shocks without weighing on its very high fiscal strength.

Proactive debt management and the very low share of foreign currency denominated debt will continue to insulate Thailand from future potential shifts in international investor sentiment, as most recently evidenced during the period of emerging market volatility in the second half of 2018. Only 1.5 per cent of outstanding government debt is in foreign currency as of April 2019 and only 17.8 per cent of outstanding local government bonds are held by non-residents as of July 2019, in both cases lower than for other similarly-rated sovereigns.

The Governing Council expects the key ECB interest rates to remain at their present or lower levels at least through the first half of 2020, and in any case for as long as necessary to ensure the continued sustained convergence of inflation to its aim over the medium term, according to a release late Thursday.

The Governing Council intends to continue reinvesting, in full, the principal payments from maturing securities purchased under the asset purchase programme for an extended period, past the date when it starts raising the key ECB interest rates, and in any case for as long as necessary to maintain favourable liquidity conditions and an ample degree of monetary accommodation.

The Governing Council also underlined the need for a highly accommodative stance of monetary policy for a prolonged period of time, as inflation rates, both realised and projected, have been persistently below levels that are in line with its aim. Accordingly, if the medium-term inflation outlook continues to fall short of its aim, the Governing Council is determined to act, in line with its commitment to symmetry in the inflation aim. It therefore stands ready to adjust all of its instruments, as appropriate, to ensure that inflation moves towards its aim in a sustained manner.

In this context, the Governing Council has tasked the relevant Eurosystem Committees with examining options, including ways to reinforce its forward guidance on policy rates, mitigating measures, such as the design of a tiered system for reserve remuneration, and options for the size and composition of potential new net asset purchases.

“Our latest measure to prevent baht speculation by reducing the limit on the outstanding balance of non-resident baht accounts (NRBA) and non-resident baht accounts for Securities (NRBS) from Bt300 million to Bt200 million is focused on foreign investors who are speculators, but the BOT continues to welcome foreign investors seeking to expand investment in the country for the long term,” said Pornpen.

She added that the bank had taken the measure to cap non-resident accounts in response to an increase of foreign inflows in June that helped push up the baht.

Pornpen said the BOT had plenty of measures in hand to manage the baht according to future developments, but would always leave room open for foreign individuals and organisations interested in expanding their long-term investment in Thailand.

Kobsit Silapachai, economic and capital markets research manager for Kasikorn Bank, said that following the BOT measure the baht had effectively weakened from Bt30.60 per US$ to Bt30.90. The measure to reduce currency speculation, especially in the bond market, was effective in reducing short-term foreign bond purchases from Bt120 billion to just over Bt80 billion.

However, Kobsit forecast that the upward trend of the baht would continue this year.

“I believe the baht will appreciate because, along with short-term investors the country also still has long-term investors who will drive up the baht till the end of this year,” he said.

Meanwhile, at its end-of-July meeting the US Federal Reserve is expected to cut the interest rate by 0.25 per cent, which should serve to weaken the dollar and perhaps cause a short-term impact on the baht, he said.

Chamber chairman Kalin Sarasin said that from the chamber’s discussions with many business operators, it was found that most of them worry over the impact of a further wage rise.

He said that only the major companies could make the adjustments to accommodate higher wages due to their massive capital holdings. Most of the companies canvassed by the chamber would rather see the government focus on upgrading labour skills.

Kalin said the government should promote more border trade, which is a key way to boost exports.

After the government’s policy announcement, the chamber will talk with Deputy Prime Minister Somkid Jatusripitak to propose its opinions on economic issues.

“Investors’ sentiment will likely be unchanged by today’s policy announcement and debate as the policies have been public for several days now but the details on their implementation are still unclear,” said Paiboon Nalinthrangkurn, chairman of the Federation of Thai Capital Market Organisations (Fetco).

However, the market may see positive signs in Thursday’s official policy announcement by Prime Minister Prayut Chan-o-cha, as it signalled continuity in major economic policies such as development of the Eastern Economic Corridor and promotion of foreign investment, he said.

The market is not expected to react significantly until investors see further details of policy and implementation, Paiboon added.

The policies unveiled by the government on Thursday were as expected, with key emphasis on short-term welfare and agriculture. However, the policies outlined were still vague and the details of how they will be implemented were still unclear, said Mana Nimitvanich, first vice president of the Krungthai Bank’s global business development and strategy group

On Thursday, the Stock Exchange of Thailand (SET) closed at 1,730.90 points, up 0.32 per cent or 5.46 points, with a value of Bt58.9 billion.

Foreign, institutional, and individual investors also recorded net buys of Bt57.50 million, Bt36.11 million and Bt361.42 million respectively.

GSB president and chief executive officer Chatchat Payuhanaveechai said the bank has also forecast the country’s economic growth at 3.5 per cent in 2020.

The main factor that will drive the country to achieve 3.6 per cent growth this year will be the new government’s investments in developing the country’s infrastructure and stimulus measures to improve the purchasing power of lower-income people.

The bank said Thailand still faces business risks from the US-China trade war, the slowdown in the global economy, decline in Chinese purchasing power to buy property due to that country’s declining growth and the high household debt that will directly impact purchasing power, he said.

The study, which draws on data from Korn Ferry’s world-class pay database, shows the pay gap increasing in 77 per cent of 58 countries.

Eight out of the nine countries in Asia saw moderate increases in their pay gaps between lower-level and higher-level employees. Thailand’s increase stands at 9.3 per cent, lower than the average increase of 15.3 per cent across the nine countries.

However, India stands out with a dramatic increase of 66 per cent in the pay gap.

Chanat Adhibai, Korn Ferry Thailand’s senior client partner and head of rewards and benefits, said: “When looking at the pay gap in markets like Thailand, it is important that we consider the definition of ‘equity’. Many organisations in Thailand are now facing talent shortage when it comes to digital jobs, especially as these organisations plan to transform traditional jobs using smart technologies. As such, talents taking on these jobs that are created in times of disruption tend to receive a pay premium.”

“Pay has become a catalyst for change. It is clear that talents need a ticket to perform in today’s dynamic environment – adapting to new roles, switching back and forth regularly, going up and down without a career ladder block. If they accept new work conditions, they will receive a new pay scheme. Pay equity is not dependent on job size anymore, but on the agility in moving along with the organization’s agendas,” Adhibai continued.

The Korn Ferry analysis also points to several additional reasons for the widening gap in developed economies.

“At the lower end of these labour markets, automation and offshoring means that enhanced productivity results in an abundance of available labour – more people than jobs – which slows the increases in pay,” said Bob Wesselkamper, Korn Ferry Global’s head of rewards and benefits solutions.

“Meanwhile, at the higher end, there’s a shortage of people with important hard skills and proven experience. Organisations also have to compete for senior managers with in-demand soft skills, such as emotional intelligence, creative thinking and the ability to manage large and complex teams. Therefore, pay at this level is going up – and is likely to increase faster than other jobs.”

While a widening gap is the norm in the majority of nations, there are areas where the gap is narrowing. For example, the pay gap is shrinking in countries like France and Italy, as a result of higher tax rates for big earners, fewer pay increases at top-levels, and government and union intervention in pay at the lower levels.

The first measure is to extend special loans for farmers at 0 per cent for the first year, the bank’s president Apirom Sukprasert said on Thursday. Of the total budget, Bt50 billion has been put aside for these emergency loans.

Farmers will be offered five-year loans of up to Bt50,000, with 0 per cent interest charged for the first year, and a minimum interest of 7 per cent for the remaining four years, he said.

He added that the remaining Bt5 billion of the budget will be used to offer loans for improving the quality of life for farmers. These loans will be given at 5 per cent interest rate and will cover 1 million farmers nationwide.

Farmers will be eligible for loans of up to Bt500,000 that can be repaid over 15 years at a minimum interest rate of 2 per cent. These loans will cover development projects such as investment in water systems or crops that use less water.

Farmers can apply for these loans from August 1 until December 31.

Providing 80 detailed metrics for 129 economies, the GII has become one of the leading references for measuring an economy’s performance as it relates to innovation.

The report rated Thailand as among the better achievers and among those middle-income economies making purposeful strides to bridge the innovation divide.

This year, four of the seven GII pillars see improvements in the Kingdom: institutions (57th), human capital and research (52nd), business sophistication (60th), and knowledge and technology output (38th).

The country has benefited from improvements in important indicators such as R&D expenditure, research talent, and gdomestic expenditure on R&D (GERD) financed by business, where it ranks 4th. It also did well for its tertiary enrolments, researchers, and patent designs.

Compared with other ASEAN economies, Thailand is exceptionally strong in trade-related variables, ranking 8th in high-tech net exports and 1st in the creation of creative goods.

Some weak areas were also identified – these included PISA results, venture capital deals, GERD financed overseas, plus ICT services imports and exports but the report said that if addressed, these could help the economy scale the innovation ladder even faster.

Thailand’s Asian neighbours were among the stellar performers, with Singapore (88th, South Korea (11th), Hong Kong (13th), China (14th), Japan (15th) and Australia (22nd) the highest-ranked in the region.

Switzerland leads the world for the ninth consecutive year, the rest of the top five being Sweden, the US, the Netherlands and the UK.

Finland and Denmark follow in 6th and 7th.

The overall picture shows innovation withstanding the pressures of slowing global economic growth.

However, only a handful of nations are reaping the full benefits and a clear innovation gap persists.